Dar al-Arkan Q3 net profit misses forecast

Riyadh, October 22, 2012

Saudi property developer Dar al-Arkan made a third-quarter net profit of SR221 million ($59 million), compared with a forecast for SR243.5 million in a Reuters poll.

Dar al-Arkan said earnings fell 33 per cent from the second quarter mainly because of lower sales, which were affected by unspecified seasonal factors. Operating profit fell 6.8 per cent to SR270 million.

The kingdom's largest property developer missed expectations with a 2.9 per cent fall in quarterly net profit.

The kingdom's real estate sector is experiencing very strong demand for housing, and the long-term outlook was strengthened in early July when the government said it had approved a mortgage law that will regulate lending to house buyers.

Dar al-Arkan's chairman said in an interview in July the company was comfortable financially after repaying most of its debt, and expected profit growth above 10 per cent in 2013. Its second-quarter net profit rose 11 per cent.-Reuters